Cash holdings by Japanese companies are very high compared to other G7 countries. As it can be seen in Figure 1, the average ratio of cash and cash equivalent holdings to market capitalisation of Japanese listed companies during 2004-2012 was above 40%, compared to values in the 15-27% range in other G7 countries.
Unstash the cash! Corporate governance reform in Japan
Chie Aoyagi, Giovanni Ganelli, 19 August 2014
Secular stagnation: Facts, causes, and cures – a new Vox eBook
Coen Teulings, Richard Baldwin, 15 August 2014
Economic growth is still anaemic despite years of zero interest rates.
Topics: Global crisis, Macroeconomic policy, Monetary policy
Tags: Europe, Great Recession, interest rates, investment, Japan, macroeconomics, savings, SecStag debate, secular stagnation, US, zero lower bound
Natural disasters, firm activity, and damage to banks
Kaoru Hosono, Daisuke Miyakawa, 13 August 2014
Direct and indirect impacts of natural disasters
Natural disasters affect firm activities in a variety of ways. They disrupt business operations directly through the loss of lives and the destruction of buildings and equipment, and indirectly through the impact on firms’ transaction partners such as their customers, suppliers, and providers of finance.
Identifying and quantifying monetary policy transmission through bank balance sheets
Kaoru Hosono, Daisuke Miyakawa, 9 August 2014
How does monetary policy affect firm activities? While there is long-standing literature on this issue, the transmission mechanism of monetary policy is currently attracting renewed attention.
Topics: Financial markets, Global crisis, Monetary policy
Tags: balance sheets, bank lending channel, credit easing, financial accelerator, global crisis, Japan, monetary policy, quantitative easing, unconventional monetary policy
Protection of intellectual property to foster innovations in the service sector
Masayuki Morikawa, 20 July 2014
Given the declining labour force due to population ageing, accelerating the productivity growth of industries – especially the service industries – is an important element of the growth strategy in Japan and most advanced countries. While there are a variety of factors affecting productivity, innovation is one of the key determinants of productivity growth.
Gender diversity in management in Japan is finally emerging: Comparison with China and South Korea
Hiromi Ishizuka, 10 July 2014
Japan was ranked 104th out of 136 countries on the World Economic Forum (WEF)’s Global Gender Gap sub-index on economic participation and opportunity in 2013. This means that Japan has the second largest labour market gender gap among the advanced economies, next only to South Korea. Meanwhile, Japan’s population peaked in 2008 and has been on the decline since.
Are large headquarters unproductive?
Masayuki Morikawa, 19 June 2014
The role of headquarters
Headquarters – the core service sector inside companies – conduct a wide range of highly strategic activities, including:
Disagreement about inflation expectations: The case of Japanese households
Shusaku Nishiguchi, Jouchi Nakajima, Kei Imakubo, 2 May 2014
It is well known that inflation expectations vary across agents. Nevertheless, this fact has attracted little attention. Analysis of inflation expectations typically tend to focus on measures such as the mean and the median of such expectations. One of the distinguished exceptions is Mankiw et al.
Clarifying the debate about deflation concerns
Mickey Levy, 21 February 2014
A common theme among many economic policymakers, financial market participants, and the media is that rich industrialised nations face a high risk of deflation, and that deflation always harms economic performance and so must be combatted with aggressive macroeconomic stimulus. Such broad assessments are misleading, and under certain circumstances may lead to misguided policies.
More time spent on television and video games, less time spent on studying?
Tomohiko Inui, Ryoji Matsuoka, Makiko Nakamuro, 16 January 2014
Many parents believe that TV and video games are ‘idiot boxes’ that rot their children’s minds and crowd out study time. We agree with this general perception, but add the caveat that less time spent on TV or video games does not automatically lead to more time spent on studying. It is easy to detect the correlation but harder to determine causality.
- Secular stagnation: Facts, causes, and cures – a new Vox eBookTeulings, Baldwin
- Can large primary surpluses solve Europe’s debt problem?Eichengreen, Panizza
- The unrecognised benefits of grade inflationBoleslavsky, Cotton
- The US manufacturing base is surprisingly strongMoran, Oldenski
- Long-term damage of the US court’s Argentinian debt rulingFrankel
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
- Debt, deleveraging, and the liquidity trap: A new modelKrugman